Indian Iron Ore Movement Down Marginally in Dec'18

As per SteelMint's analysis, iron ore movement across major producing states of the country recorded at 139.8 MnT (excluding exports) in CY'18.

The total iron ore movement in Dec'18 stood at 12.24 MnT. The iron ore movement has recorded marginal fall against 12.48 MnT in Nov'18. The figures are compiled on the basis of movements made via railways, trucks, and Karnataka and import data as per customs. The figures exclude the captive iron ore movement of SAIL & Tata Steel and movement for exports.

State-wise iron ore movement analysis:

Odisha Iron ore dispatches up marginally on monthly basis

Iron ore dispatches from Odisha in Dec'18 witnessed at 6.54 MnT, up by 2% as against Nov'18 dispatches at 6.39 MnT.

Odisha based merchant miners have reduced iron ore prices further in Dec'18. Domestic Iron ore prices have dropped upto 34% in last 2 months on supply pressure. Fines prices have come down by 34% while lump prices have come down by 25%. SteelMint also heard that miners have discounts on bulk quantity purchase over announced listed offers. Odisha merchant miners are looking at scaling up their iron ore production in order to utilize their remaining Environmental Clearance (EC) approved before 2020 lease expire. Therefore, miners may explore the export opportunity to de-stock their ore.

Rungta Mines recorded highest dispatch in Dec'18 at 1.53 MnT, up 17% as against 1.31 MnT in last month, followed by OMC at 0.74 MnT (down 21% M-o-M) and Serajuddin at 0.69 MnT (up 12% M-o-M).

Iron ore dispatches from C.G down marginally in Dec'18

India's largest iron ore miner, NMDC supplied 336 rakes of iron ore in Dec'18, up slightly on monthly basis, against 330 rakes in Nov'18.

Total iron ore dispatches from Chhattisgarh down by 3% to 1.73 MnT in Dec'18 as against 1.78 MnT in Nov'18.

Karnataka iron ore e-auction sales down 12% in CY18

Karnataka has registered a decline of 12% Y-o-Y iron ore sales via e-auction in CY'18. Total iron ore allotted quantity stood at 25.41 MnT in CY18 compared to 29 MnT in CY'17.

Karnataka e-auction sales recorded at 2.07 MnT in Dec'18, down 26% M-o-M compared to 2.79 MnT in Nov'18.

NMDC's iron ore sales decreased by 62% M-o-M to 0.39 MnT in Dec'18 compared to 1.01 MnT in Nov'18. Amid suspension in iron ore mining activities in NMDC Donimalai, total sales volumes have come down drastically. NMDC sold all its iron ore from its Kumaraswamy mines recording a sharp decrease in its sales volume by almost three times.

Iron ore operations are still on hold at NMDC's Donimalai mine, which was renewed lease on 3rd Nov'18 for the next 20 years. Last month, NMDC (National Mineral Development Corporation) - India's largest iron ore mine had approached the Karnataka High Court for an urgent hearing on NMDC Donimalai lease renewal issue which was scheduled 10th Jan 2019. Karnataka High Court had postponed hearing, and rescheduled its hearing for the matter on Jan 22, 2019.

Indian iron ore imports up significantly in CY'18

Indian iron ore import in CY18 hit highest ever at 15.66 MnT, according to the customs data maintained by SteelMint. The imports have increased significantly on yearly basis as against in CY'17 to 5.5 MnT.

Indian iron ore imports recorded at 1.46 MnT in Dec'18. India's imports were up by 26% M-o-M against 1.16 MnT in Nov'18. Indian iron ore imports picked up amidst rising steel capacities, low domestic availability and high discount offers by Australian miner FMG.

Indian iron ore & pellet exports down 36% in CY18

Indian iron ore & pellet exports recorded at 18.89 MnT, down 36% as against 29.59 MnT in CY17.

Indian iron ore (including pellet) exports in Dec'18 recorded at 1.52 MnT, down 19% against 1.88 MnT in Nov'18. The exports have recorded downfall amidst Goa mining ban and delay in resumption at NMDC mines.

BRPL stood the largest exporter of pellet for the duration of CY'18 with exports at 2.03 MnT (up 14% Y-o-Y), JSPL recorded pellet exports at 1.61 MnT (down 19% Y-o-Y), followed by KIOCL at 1.51 MnT (up 6% Y-o-Y), Rashmi Metaliks at 0.98 MnT (down 35% Y-o-Y) and Essar Steel at 0.86 MnT (down 37%).

Indian Iron Ore Movement Dec'18 v/s Nov'18

Qty in MnT, Import and Export Fig includes pellet
Excluding SAIL & Tata Captive procurement
Source: SteelMint Research